Gold finds solid support, turns bullish

Daily Market Analysis (SHORT TERM) Monday 11/19/2012

Confirmation of a bottom with a range violation on 11/06/12 @ 110.27. Confirmation of a bottom with a close violation on 11/06/12 @ 110.27. Upside Targets = 110.78 – 112.12.

January Brent Crude was able to rise to its highest closing price all week on Friday in a relatively tight trading session heading into the weekend as congressional leaders were able to appease the markets with promise of compromise on the fiscal cliff.

Look for a continuation of Friday’s gains on Monday as the market challenges new highs for the month above $110.69.

Should Brent trade to $110.70 this week, look for the market to continue moving higher to the month end objective of $114.74.

Projected Daily Range: 2.10

Projected Weekly Range: 5.43

Projected Monthly Range: 10.65

WTI Crude Oil (January ‘13):

Short Term Trends are bearish.

Confirmation of a top with a range violation on 11/07/12 @ 84.86. Confirmation of a top with a close violation on 11/07/12 @ 84.86. Upside Targets = 88.99 – 89.89.

January WTI Crude Oil also moved to new highs for the week on Friday because of the speculation of compromise in Washington and increasing tensions in Israel.

Look for a solid move higher on Monday as the market looks to spring out of the recent consolidation phase and challenge once again the $90 mark.

Confirmation of a bottom with a range violation on 11/14/12 @ 3.776. Confirmation of a top with a close violation on 10/26/12 @ 3.724. Upside Targets = 3.821 – 3.908.

December Natural Gas reversed course on Friday to move back near the week’s highs and close at its highest weekly level in nearly a month as Thursday’s sell-off proved to be nothing more than slight profit taking after a sprinters’ rally early in the week.

While natural gas got to within just a penny of entering our downside support zone that was issued on Thursday morning, the market now looks to be resuming full bullish form and could trade as high as $3.90 by early this week.

About the Author

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.